Germany’s Deutsche Bank AG has been raided on Wednesday due to suspicions of money laundering activities. While no Bitcoin has been found during the raid, a team of 170 officials stormed the German investment bank.
The mainstream media has been portraying Bitcoin as generally used in financial crimes like money laundering. The raid on Deutsche Bank based on allegations of hiding ill-gotten funds only proves otherwise.
Frankfurt-based prosecutors claim that suspicion that the bank is involved in money laundering activities go way back to the 2016 Panama Papers.
Still, the ensuing investigation is centered between the 2013 to 2018 period. The investigation names two Deutsche Bank employees as the primary suspects. While the pair’s identities have yet to be disclosed, their ages are revealed to be 50 and 46.
Wednesday morning’s raid sees 170 officials rushing in Deutsche Bank’s Frankfurt buildings. The raiding team has confiscated both electronic and physical documents.
Incited by the Panama Papers, the investigation is able to discover evidence suggesting that the German investment bank has been setting up off-shore accounts for customers in different tax havens. Allegations also include the bank’s failure to report shady accounts purportedly used in receiving ill-gotten funds. The investigation is focused on Deutsche Bank’s British Virgin Islands branch. In a November 28 report by Bloomberg, prosecutors say that more than $354 million has been transacted by the branch in 2016 alone.
Deutsche Bank AG has been one of the most fined banks in the whole of Europe. The financial institution has already spent over $18 million in legal disputes and fines in conjunction with financial offenses committed over the last decade. It comes second only to the Royal Bank of Scotland Group, which paid $100 million dollars more than Deutsche Bank.
Markus Riesselmann, an analyst at Independent Research, comments about the news saying:
“Just when you thought Deutsche Bank had left its legal troubles behind it, there’s more… Investors really want to be able to focus on the bank’s operating business, so this noise around them is quite unhelpful for the mood.”
Despite mainstream media’s negative portrayal of Bitcoin being used on money laundering activities, no cryptocurrency has been used in committing the financial crime involving Deutsche Bank. This is a clear indication that financial criminals will use any means necessary (and not only Bitcoin) to commit crimes.
However, this fact has not prevented entities in the traditional financial sector from questioning and denouncing Bitcoin’s attributes. Evidence shows that less than 1 percent of Bitcoin transactions are fraudulent, may it be financial or otherwise.